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Chapter 20
Relationship Marketing
In the Business of Sports
McGraw-Hill/Irwin
20-1
©2007 The McGraw-Hill Companies, All Rights Reserved
Two Broad Marketing Objectives
• Attracting New Customers
• Retaining Existing Customers
– Customer Acquisition Can Be Costly
– Customer Retention Deemed Superior
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Customer Retention
• Basic Premise of Relationship Marketing
• Seeking Long-Term Association
• Cost of Customer Acquisition Estimated to
be 6 Times the Cost of Taking the Steps
Required to Keep an Existing Customer
Satisfied
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Relationship Marketing
• An Integrated Effort to Identify, Maintain,
and Build a Network with Individual
Consumers and to Continuously
Strengthen the Network for the Mutual
Benefit of Both Parties through Interactive,
Individualized and Value-Added Contracts
Over a Long Period of Time
• Focus on Lifetime Customer Value (LCV)
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Benefits for the Sports Marketer
• Customer Loyalty
• Facilitates Resolution of Fans’ Complaints
• Sense of Belonging
– BIRGing – We Won
– CORFing – We Lost, But We Were Robbed
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Benefits for the Sports Marketer
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Components of
Relationship Marketing
• Mutually Beneficial
– Win-Win Partnership; Buyer & Seller Benefit
• Trust
– Feeling that the Other Party Will be Honest
• Empathy
– Understand Each Other’s Situation
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Components of
Relationship Marketing
• Communications
– Interactive and Responsive
• Bonding
– Strong Unified Commitment Viewed by the
Participants as a Partnership
• Continuity
– Seek a Long-Term Association
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A Look at Fan Bonding
• The Core Relationship
– Usage
• Length of Relationship
• Intensity of the Commitment
• Frequency of Contact
– Fan Identification
• Emotional Involvement
• Personal Commitment
• Loyalty
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A Look at Fan Bonding
• The Expanded Relationship
– Responsiveness to Product Merchandising
• Purchase of logo Merchandise
– Propensity to Engage in Word-of-Mouth
Advertising
• Talk About recent Results
• Talk About Future Competitions
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Applications of Relationship
Marketing in Sports
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Clubs
• Spectator Sports – Fan Club
– New Zealand Cricket Fraternity
• Participation Sports – Club for Players
– PGA Tour Partners Club
• SASS – Club for Users of Particular Brand
– Storm Chasers (Storm Bowling Balls)
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Serial Marketing
• Spectator Sports
– Giveaways
– Require Regular
Attendance for
Complete Set
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Frequency Incentives
• Spectator Sports – Frequent Attendance
– English Rugby Football Union Smart Card
• Participation Sports – Frequent Play
– 10-Pin Bowling: Play 6 Games; Get 1 Free
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Affinity Marketing Programs
• Spectator Sports – Credit Card That Benefits
Both the Sports Property and the Fan
– MBNA NASCAR RacePoints Visa Credit Card
• Participation Sports – Lifestyle-Based Credit
Card
– Ducks Unlimited MasterCard Credit Card
• SASS – Credit Card Use Accrues “Points”
– Bass Pro Shops Outdoor Rewards Visa Credit Card
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Affinity Marketing Programs
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Routine Periodic Communications
(One-Way)
• Traditional Print Media or E-Mail
• Spectator Sports – Contacting Fans
– Newsletter, Schedule, Promotions
• Participation Sports – Contacting Participants
– E-Mail Seeking Runners for Upcoming Marathon
• SASS – Magazines
– Callaway Golf Magazine
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Interactive Opportunities
• Spectator Sports – Internet Chat Room
– Dialog between Fans and Player
• Participation Sports – Real Time Results
– Boston Marathon Participant Tracking
• SASS – Information and E-Products
– adidas.com downloads and store locator
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Gifts
• Spectator Sports – Recognize Relationship
– NFL Team’s Christmas Ornament for Season Ticket
Buyers
• Participation Sports – Encourage Return
– Golf Tournament that Provides Gift Pack for Players
• SASS – Reward for Past Use
– Bowling Ball Co. that Gives Special-Edition Ball to
Recognize Perfect Game by Bowler Using Its Brand
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Fan Appreciation Activities
• Spectator Sport Based
– Player Clinics
– Autograph Sessions
– Celebrations of Team Achievements
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Contests
• Spectator Sports – Win Tickets
– Future Game or Cross-Marketed Event
• Participation Sports – Register On-Line; Chance to Waive Fees
• SASS – Win Product
– Titleist.com: Win Year’s Supply of Golf Balls
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Logo Merchandise
• Spectator Sports – Peripheral Product
– Premiums that Incorporate Team Logo
• Participation Sports – Reward Performance
– Bowler Receives Logo Jacket for 300 Game
• SASS – Support Core Product
– Storm Bowling Balls Sell Shirts, Towels, etc.
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Direct Access/
Personal Representative
• Spectator Sports – Ticket Representative
– Assigned to Handle Season Ticket Accounts
– Addresses Exchanges
– Resolves Complaints
– Addresses Renewal
– Provides Constant Point of Contact Over Time
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Recognition
• Spectator Sports – PA Announcement
– Birthday of a Season Ticket Holder
• Participation Sports – Acknowledgement
– Tournament Web Site Identifies Bowlers Who Attain a
Noteworthy Mark in Continuous Participation
• SASS – Identification on Website
– Recognize Achievers Who Used the Marketer’s
Product in a Noteworthy Performance
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Example in Spectator Sports:
NASCAR
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Apartment Building by Lowe’s Speedway
NASCAR Thunder Store
NASCAR Café
NASCAR Amusement Centers
NASCAR Simulators
Daytona USA Theme Park
Pit Stop Challenge
Simulate Role of Race Announcer
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Example in SASS:
Reebok
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Focus on Female Runner Target Market
Focus on Smaller Retailers
Emphasize Running Roots in Promotions
Sponsor US Olympic Track & Field
Grass Roots Sponsorship of Running
Events
• Newsletter to Known Runners
• Seek Input from Retailers
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Evaluating the Effectiveness of a
Relationship Marketing Program
• Track Sales
• Monitor Complaints
• Customer Satisfaction Surveys
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Evaluating the Effectiveness of a
Relationship Marketing Program
• Monitor Internet Chat Rooms and Bulletin
Boards
• Calculate Click-Through Rate for InternetBased Relationship Marketing Initiatives
• Customer Relationship Marketing
Software
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Recovery Marketing
• When Things Go Bad, How Do We Get the
Customers to Come Back?
• NHL After Cancelled 2004-05 Season
• Formula 1 Racing in USA After 14 of the
20 Cars Entered Refused to Race
because of Safety Concerns about Tires
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Five Steps for Recovery Marketing
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Closing Capsule
• Relationship Marketing Is All About
Customer Retention
• Key Issues Are Customer Satisfaction and
Problem Resolution
• Relationship Marketing Encompasses All
Elements of a Marketing Strategy
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Closing Capsule
• Win-Win Environment
• Focus Is on Lifetime Customer Value – In
Other Words, a Long Term Relationship
• Despite Best Efforts, Things Go Awry
• Need to Understand Recovery Marketing
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